VFH vs. XLF
Compare and contrast key facts about Vanguard Financials ETF (VFH) and Financial Select Sector SPDR Fund (XLF).
VFH and XLF are both exchange-traded funds (ETFs), meaning they are traded on stock exchanges and can be bought and sold throughout the day. VFH is a passively managed fund by Vanguard that tracks the performance of the MSCI US Investable Market Financials 25/50 Index. It was launched on Jan 26, 2004. XLF is a passively managed fund by State Street that tracks the performance of the Financial Select Sector Index. It was launched on Dec 16, 1998. Both VFH and XLF are passive ETFs, meaning that they are not actively managed but aim to replicate the performance of the underlying index as closely as possible.
Scroll down to visually compare performance, riskiness, drawdowns, and other indicators and decide which better suits your portfolio: VFH or XLF.
Performance
VFH vs. XLF - Performance Comparison
Returns By Period
The year-to-date returns for both stocks are quite close, with VFH having a 35.42% return and XLF slightly lower at 34.95%. Both investments have delivered pretty close results over the past 10 years, with VFH having a 12.02% annualized return and XLF not far behind at 11.90%.
VFH
35.42%
7.44%
23.99%
47.35%
13.20%
12.02%
XLF
34.95%
6.41%
22.22%
44.58%
13.14%
11.90%
Key characteristics
| VFH | XLF | |
|---|---|---|
| Sharpe Ratio | 3.26 | 3.27 |
| Sortino Ratio | 4.61 | 4.61 |
| Omega Ratio | 1.60 | 1.59 |
| Calmar Ratio | 3.79 | 3.79 |
| Martin Ratio | 23.37 | 23.39 |
| Ulcer Index | 2.05% | 1.93% |
| Daily Std Dev | 14.72% | 13.82% |
| Max Drawdown | -78.61% | -82.69% |
| Current Drawdown | 0.00% | 0.00% |
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VFH vs. XLF - Expense Ratio Comparison
VFH has a 0.10% expense ratio, which is lower than XLF's 0.13% expense ratio. Despite the difference, both funds are considered low-cost compared to the broader market, where average expense ratios usually range from 0.3% to 0.9%.
Correlation
The correlation between VFH and XLF is 0.98, which is considered to be high. That indicates a strong positive relationship between their price movements. Having highly-correlated positions in a portfolio may signal a lack of diversification, potentially leading to increased risk during market downturns.
Risk-Adjusted Performance
VFH vs. XLF - Risk-Adjusted Performance Comparison
This table presents a comparison of risk-adjusted performance metrics for Vanguard Financials ETF (VFH) and Financial Select Sector SPDR Fund (XLF). Risk-adjusted metrics are performance indicators that assess an investment's returns in relation to its risk, enabling a more accurate comparison of different investment options.
Dividends
VFH vs. XLF - Dividend Comparison
VFH's dividend yield for the trailing twelve months is around 1.59%, more than XLF's 1.33% yield.
| TTM | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 | 2014 | 2013 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
VFH Vanguard Financials ETF | 1.59% | 2.08% | 2.31% | 1.87% | 2.21% | 2.17% | 2.30% | 1.53% | 1.63% | 2.00% | 1.85% | 1.82% |
XLF Financial Select Sector SPDR Fund | 1.33% | 1.71% | 2.04% | 1.63% | 2.03% | 1.86% | 2.09% | 1.48% | 1.63% | 1.95% | 1.61% | 1.47% |
Drawdowns
VFH vs. XLF - Drawdown Comparison
The maximum VFH drawdown since its inception was -78.61%, roughly equal to the maximum XLF drawdown of -82.69%. Use the drawdown chart below to compare losses from any high point for VFH and XLF. For additional features, visit the drawdowns tool.
Volatility
VFH vs. XLF - Volatility Comparison
Vanguard Financials ETF (VFH) has a higher volatility of 7.75% compared to Financial Select Sector SPDR Fund (XLF) at 7.09%. This indicates that VFH's price experiences larger fluctuations and is considered to be riskier than XLF based on this measure. The chart below showcases a comparison of their rolling one-month volatility.